WASHINGTON (AP) – Average long-term mortgage rates in the US resumed growth this week, when a key 30-year loan reached its highest level since 2009.
The raise came in the week leading up to the much-anticipated actions of the Federal Reserve announced Wednesday to step up its fight against the worst inflation in 40 years, raising the base interest rate by half a percentage point and signaling a further significant rate hike. . This move by the Fed, its most aggressive since 2000, will lead to higher spending on mortgages as well as credit cards, car loans and other loans to individuals and businesses.
Mortgage buyer Freddie Mac said Thursday that the 30-year rate rose to 5.27% from 5.1% last week as it fell after a seven-week hike. On the contrary, a year ago the average was 2.96%.
The average rate on 15-year fixed-rate mortgages, popular with those refinancing their homes, jumped to 4.52% from 4.4% last week.
Due to a four-decade high inflation, rising mortgage rates, high housing prices and limited housing offers for the sale of home ownership has become less affordable, especially for first-time buyers.
Some economists believe that home sales this year may fall by 10% compared to 2021.
In a statement Wednesday after their two-day meeting, Fed politicians noted that Russia’s invasion and war against Ukraine are exacerbating inflationary pressures by raising oil and food prices. Inflation, according to the Fed’s advantage, reached 6.6% last month, the highest in four decades. This has been accelerated by a combination of high consumer spending, chronic supply bottlenecks and dramatically increased gas and food prices.
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